- Author
- Johannes, J. M. | Koch, P. D. | Rasche, R. H.
- Title
- Investigation of Factors Affecting Geographic Cost Differentials on Military Construction Projects.
- Coporate
- Univ. of Michigan State, East Lansing
- Sponsor
- National Bureau of Standards, Washington, DC
- Report
- NBS GCR 80-197, February 1980, 99 p.
- Distribution
- Available from National Technical Information Service
- Contract
- 8-9021
- Keywords
- building economics | construction | cost estimation | econometric models | economic analysis | engineering economics | mathematical models | program planning
- Abstract
- The Center for Building Technology of the National Bureau of Standards is conducting a project to develop an economically sound method for estimating area cost factors for military construction projects. Accurate estimates of area cost factors are of crucial importance to the military since these factors are used as deflators to control for regional cost differentials among planned projects. The focus of this report is on tlhe theoretical and empirical considerations associated with the estimation and use of cost functions to control for variations in construction cost due to changing location and structure type. Three classes of cost functions are estimated based on an assumed Cobb-Douglas production technology. A base city is then chosen for use as a deflator. This approach permits area cost factors for each major geaorgraphical region to the calculated. Included in the report are annual estimates of the area cost factors for military construction projects in each major geographical region between the years of 1975 and 1978.